As a seasoned analyst with over two decades of experience in the financial markets, I find the surge in Coinbase Advanced’s trading volumes and user base quite intriguing. The rapid growth in derivatives trading, especially, is a testament to the evolving nature of the cryptocurrency market and its increasing appeal to professional traders.
2024 saw a significant increase in both user numbers and trading activity on the specialized trading platform of Coinbase Pro, as reported by Investing.com.
According to a report released on December 19th, the trading volume on this platform surged by an impressive 191%, primarily due to a significant rise in derivative trading. Additionally, there was a substantial 77% growth in user count as well.
For skilled traders, Coinbase Pro offers a regular monthly fee in return for reduced transaction expenses, access to various order options, and analytical tools.
Coinbase did not immediately respond to a request for comment from CryptoMoon.
Surging derivatives volumes
Back in 2024, I noticed an astonishing surge in the popularity of derivatives products. The volume of these trades skyrocketed an unprecedented 10,950%, a growth rate that left me quite amazed, as Coinbase shared with Investing.com.
2022 saw Coinbase introducing their derivatives trading platform within the U.S., enabling over ten million American users to trade cryptocurrency futures, such as compact versions of Bitcoin and Ethereum.
As a crypto enthusiast, I’m excited about the diverse range of investment opportunities available on platforms like Coinbase. They offer more than just a few futures contracts, including those linked to meme-driven cryptocurrencies like Dogecoin (DOGE) and Shiba Inu (SHIB), as well as traditional commodities such as oil and gold. This variety allows me to diversify my portfolio in unique and dynamic ways.
As a crypto investor, I’ve noticed an incredible surge in the market for cryptocurrency derivatives throughout 2024. A recent report by CCData reveals that the monthly trading volume of these derivatives has more than doubled compared to the same period last year, surpassing a staggering $3 trillion in September alone.
In simpler terms, futures contracts represent promises to either purchase or sell a specific asset at a later time. These agreements serve a crucial purpose in risk management strategies known as hedging, and they’re often used by traders who want to amplify their predictions about an asset’s directional movement with the help of financial leverage.
New token listings
During this time, it seems that the number of people engaging in cryptocurrency trading on Coinbase Pro increased by 47% due to optimistic feelings following Donald Trump’s victory in the U.S. election and the addition of new tokens to their platform.
As a financial analyst, I anticipate that under the crypto-friendly administration, Coinbase envisions expanding its services to include certain tokens that were previously unavailable due to regulatory constraints, as shared by Tom Duff Gordon, Vice President of International Policy at Coinbase, during an interview with Bloomberg in November.
“We’re talking more about some of the smaller tokens, some of the memecoin tokens,” Gordon said.
In the month of December, Coinbase introduced memecoins such as Moodeng (MOODENG), Mog (MOG), and Dogwifhat (WIF) to its platform, along with a few others.
In November, the value of shares for cryptocurrency trading platform Coinbase significantly increased, causing the stock price to break through the $300 barrier for the first time since early 2021.
The stock price has mildly retreated to approximately $280 by December 18th, based on data from Google Finance.
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2024-12-19 20:30